Role of NFTs in The Metaverse
Science fiction movies like Ready Player One depict the metaverse as a destination and a process of
control. In the movie, a single corporation went on a quest to take control of the OASIS storage
infrastructure. This would enable them to delete people, access any information, alter cultural rules, and
print money indefinitely. Role of NFTs in The Metaverse We can draw parallels in the first virtual worlds available in gaming today.
Centralization vs Decentralization:
In many ways, we see centralized, proprietary use with shareholder supremacy recognized over user-centricity. It has become normal for individuals to give away their time and data in return for free access
to portals. But is the access really free? The time and personal information you give away are valuable
attributes of your identity.
Since the 2020 lockdown due to COVID-19, people have invested time, data, and wealth to the tune of
over $10bn. It is important to analyze the design principles and business models of virtual worlds and
gaming environments. This would help us decide whether it is beneficial for us to continue to use these
services or will look for alternatives.
Transforming Business Today:
By now you would have had the term metaverse thrown around a lot. Ever since Facebook rebranded its
identity, there have been a lot of interviews about the metaverse. One of Europe’s first venture capitals
dedicated to blockchain started what we now understand as web 3.0. It is a paradigm based on the
sovereignty of the user. It has been clear right from the outset, that blockchain cannot be viewed in
isolation as it represents more than a single technology. It opens a new economic system that will enable
diverse technology trends.
Role of NFTs in The Metaverse:
Blockchain technology is going to change the business model of the world web. It affects almost every
industry through the innovation of NFTs (non-fungible tokens). The blockchain now allows new unique
digital assets. This extends into gaming and virtual worlds into what we might now refer to as the
Metaverse. So, the NFT is a use case within the metaverse. Role of NFTs in The Metaverse
Benefit Role of NFTs in The Metaverse:
In the metaverse, like Decentraland, people
buy and develop virtual lands. Within the virtual environment, you have parked, shopping malls, concert
halls, and other experiences. As a user, you could buy a taxi and give people a ride from one point to
another within the metaverse. Role of NFTs in The Metaverse Already, the taxi is a utility that generates recurring revenue for you. Again,
NFT is a use case within the metaverse.
The Different Types of NFTs:
The definition of what an NFT can be is still pretty loose, as basically, anything can be an NFT. Here are
the more common and sensible NFTs that are on the market.
1.Community Utility:
One of the most popular use cases is NFTs used as passes for membership in a community. Many of the
top projects in the NFT space, like Bored Apes Yacht Club, Neo Tokyo, CyberKongs, etc…. are Community-based NFT projects that are centered around a common vision. Identify Avatars
2.Identity Avatars:
These NFTs deal with identity online and in the Metaverse. They can range from digital avatars to virtual
fashion items you use to dress up your avatar or profile pic
3.Virtual Real Estate:
Another frontier in the NFT space is with video games. Companies aren’t selling entire games as NFTs.
Rather, they’ll sell in-game content, like skins, characters, and other items. Nowadays, millions of copies
of DLC assets are sold to players, but an NFT asset will be unique and exclusive to one buyer. Developers
can sell regular DLC, but then sell a limited-edition version of it on the NFT market.
4.Art:
Art is one of the most popular forms of NFT out there. The most valuable NFT ever sold is called
“EVERYDAY’S: THE FIRST 5000 DAYS” by renowned artist Beeple. This piece sold for a whopping $69
million.
5. Music:
Also high on the NFT spectrum is music. Music has been a fungible good for decades, being recorded and
distributed on records, cassettes, CDs, and digitally. Generally, musicians only pocket a fraction of the
money that their music generates. This is due to streaming platform cuts and record label cuts.
When it comes to NFTs, musicians can keep roughly 100% of the money, which is why so many musicians
are turning toward this method. Additionally, a musician’s fans can support them by buying up NFTs that
represent ownership in a song or album and earning crypto as the song or album becomes more and more
popular.
6.Role of NFTs in The Metaverse Domain Names:
You can register a domain name and sell it on the NFT market, and that comes with a certain benefit.
Usually, you need to pay a third-party company to manage your domain name. If you buy one on the NFT
market, you will be able to claim exclusive ownership of the name, cutting out the middleman.
7.Collectible Items:
NFTs can be thought of as digital trading cards. We all know about limited edition baseball cards selling
for thousands of dollars, and the NFT market isn’t much different. People can buy and trade virtual
versions of trading cards on the market and keep them just like keeping the real thing. And, just like the
real thing, some sell for over a million dollars.
8.Big Sports Moments:
NFTs offer something that doesn’t really have a physical equivalent: memorable sports moments. These
are short clips of important moments in sports. They include game-changing touchdowns, historic wins,
and so on. These clips can be as short as 10 seconds but sell for upwards of $200,000.
9.Role of NFTs in The Metaverse Memes:
In case you thought the internet couldn’t get more interesting, you can buy and trade memes on the NFT
market. What’s neat is that in some cases, the person in the meme is the actual seller. Some of the more
popular memes like Nyan Cat, Bad Luck Brian, Disaster Girl, and others are on the list, racking in between
$30,000 and $770,000. The most valuable meme to date is the Doge meme, which sold for a jaw-dropping
$4 million.
10.Role of NFTs in The Metaverse Real Estate:
Real Estate is now being sold via NFT. Imagine being able to buy 1/1000th of the Empire State Building
and earning a portion of the rental income. This area of NFTs is just beginning.
11.Miscellaneous Items:
Not so long ago, Jack Dorsey literally sold a tweet. This opens up the possibility for people to sell anything
on the NFT market, really. People may want to sell their own tweets, Facebook statuses, articles, and so
on.
